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Compugen Ltd., which previously signed deals with Teva Pharmaceutical Industries Ltd. and Medarex Inc., has entered another partnership, this one with Merck and Co. Inc. to discover peptides that activate selected G protein-coupled receptors (GPCRs).

The agreement starts out with Compugen using its GPCR discovery engine to identify and validate peptides likely to activate GPCRs, membrane protein receptors that play a role in signal transduction in a number of physiologic processes and make up the largest family of known drug targets. To date, Compugen's discovery technology has identified 33 peptides believed to be potential ligands for GPCRs, and of those, eight have been shown to modulate GPCRs of interest.

Depending on the success of the discovery portion of the deal, Whitehouse Station, N.J.-based Merck can opt for an exclusive worldwide license to the peptides - any deal would be structured on a peptide-by-peptide basis - for further development and commercialization.

Financial terms of the deal were not disclosed, but the news bumped shares of Tel Aviv, Israel-based Compugen (NASDAQ:CGEN) up 15 cents, or 8 percent, Monday to close at $2.01.

Compugen previously said it planned to partner its GPCR program to investigate the ligands it already discovered, which include those targeting the receptors MAS1 and MAS-related GPCRs, MRGX1 and MRGX2, and FPRL1 and RXFP1 and RXFP2, as well as to develop additional ligands emerging from its GPCR discovery engine in the future.

Meanwhile, the firm continues moving forward on a therapeutic pipeline stemming from its first discovery program, which uses splice variants of known clinically related protein drugs or targets. Compugen has CGEN-241, a protein designed to act as an antagonist of the hepatocyte growth factor (HGF)-Met pathway for treating cancer, and CGEN-34, a splice variant coded for the peptide hormones atrial natriuretic peptide and urodilatin, in early development for cardiac and renal indications.

Compugen also is developing CGEN-54 as part of its deal with Petach Tikva, Israel-based Teva. That drug is designed to inhibit the MCP1-CCR2 pathway to modulate disease progression in inflammatory indications such as multiple sclerosis. Under the terms of the August agreement, the companies will work together on the initial research, with Teva retaining an option to license worldwide rights in exchange for milestones and royalties.

In a separate ongoing collaboration, Compugen is working with Princeton, N.J.-based Medarex to create therapeutics for cancer and autoimmune diseases. That deal, signed a year ago, calls for the firms to share discovery, development and commercialization responsibilities on resulting antibody-based drugs. (See BioWorld Today, Jan. 4, 2007.)

The firm, which has not yet reported fourth-quarter and year-end revenues, posted a net loss of $2.7 million, or 9 cents per share, for the third quarter of 2007. Compugen had a cash position of $19.1 million as of Sept. 30, and at that time, said those funds, plus $10 million, should be sufficient to sustain operations through the middle of 2010.

In other deals news:

• Access Pharmaceuticals Inc., of Dallas, agreed to grant New Haven, Conn.-based RHEI Pharmaceuticals Inc. rights to market MuGard in China and certain other Southeast Asian countries. RHEI will be responsible for marketing the product in China, Hong Kong, Macau, Taiwan, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, and will handle manufacturing and regulatory activities for those areas. Financial terms of the deal were not disclosed. MuGard previously received marketing allowance from the FDA for the management of oral mucositis, a debilitating side effect of many cancer treatments.

• Artes Biotechnology GmbH, of Langenfeld, Germany, and Rhein Minapharm Biogenetics, a subsidiary of Cairo, Egypt-based Minapharm SAE, started a collaboration to develop three therapeutic proteins. Under the terms, Artes will use its Hansenula technology platform and know-how for the generation of cell line production, analytical assay development and lab-scale fermentation, and granted Minapharm a commercial license option to apply its technologies to the manufacturing and marketing of those proteins. Artes also will handle the 100 L-scale production of a Minapharm protein based on an existing process using E. coli. Minapharm will carry out the process research and development, production and commercialization. Financial terms were not disclosed.

• Crucell NV, of Leiden, the Netherlands, signed a nonexclusive license granting Seoul, South Korea-based ISU Abxis rights to its STAR research technology. The deal covers both a research evaluation of STAR for the production of recombinant proteins and an option for a commercial license. Financial terms were not disclosed.

• Forticell Bioscience Inc., of New York, entered a material transfer and technology evaluation deal granting CJ CheilJedang, a food and health care company in South Korea, exclusive right for a limited time to use its Fibrin MicroBeads technology for the extraction and expansion of mesenchymal-type stem cells from human umbilical cord blood. Forticell's wholly owned subsidiary, Hapto Biotech Inc., will provide the technology, along with research protocols and methods, and CJ will evaluate and optimize those procedures toward potential commercialization for in vivo treatment to induce regeneration or repair of damaged and/or diseased tissues. If the research is successful, both companies will share new intellectual property and can negotiate a subsequent licensing and product development agreement. Financial terms were not disclosed.

• ImmunoVaccine Technologies Inc., of Halifax, Nova Scotia, signed licensing agreements for Pfizer Animal Health, a division of New York-based Pfizer Inc., to apply its VacciMax vaccine platform to the potential development of livestock vaccines. Specific terms were not disclosed, though IVT said it will receive up-front signing fees, milestones and royalty payments. VacciMax is a vaccine-enhancement platform comprised of liposomes and adjuvants and is designed to enhance antibody production.

• OncoMethylome Sciences SA, of Liege, Belgium, and Epigenomics AG, of Berlin, entered a broad technology licensing agreement under which OncoMethylome obtained worldwide nonexclusive rights to several of Epigenomics' core technologies, including its MethyLight portfolio for the sensitive and quantitative detection of DNA methylation for in vitro diagnostic product development and commercialization. OncoMethylome also gained rights to HeavyMethyl technology, plus certain microarray-based technologies for DNA methylation analysis. In return, Epigenomics will receive an up-front payment and is eligible for royalties to be paid on any eventual commercial exploitation of the technologies by OncoMethylome or its partners. Both companies continue to develop their own products independently, and biomarker licenses have not been granted. Further terms were not disclosed.

• Plasticell Ltd., of London, entered an agreement with Axordia Ltd., of Sheffield, UK, to exploit and market a panel of six human embryonic stem cell lines. Under the terms, Plasticell obtained a right to make and sell the hESC lines Shef 1, 2, 4, 5, 7 and 8, which were derived at the University of Sheffield. Privately held Plasticell focuses on discovering regenerative small-molecule drugs and forming alliances for high-throughput stem cell differentiation to derive cell lines and reagents. Terms of the licensing agreement were not disclosed.

• Regenetech Inc., of Houston, signed a license covering South Korea for its stem cell expansion technology, cellXpansion, with Korea Stem Cell Bank Co. Ltd. Financial terms were not disclosed. The cellXpansion technology, based on NASA technology, is designed to perform rapid adult stem cell growth and multiplication. The company reported last year that it achieved an average 60-fold increase of CD34+38-peripheral blood progenitor cells in as few as six days. Regenetech previously signed a country-exclusive license for the cellXpansion technology in Mexico with Regenevita, a recently formed Mexican firm.